EPAM Systems Inc (EPAM)

Financial leverage ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total assets US$ in thousands 4,352,360 4,009,150 3,523,230 2,721,330 2,244,210
Total stockholders’ equity US$ in thousands 3,470,890 3,001,530 2,487,120 1,983,020 1,596,140
Financial leverage ratio 1.25 1.34 1.42 1.37 1.41

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,352,360K ÷ $3,470,890K
= 1.25

The financial leverage ratio of EPAM Systems Inc has shown a slight decreasing trend over the past five years, from 1.41 in 2019 to 1.25 in 2023. This indicates a decreasing reliance on debt to finance the company's operations and growth. A lower financial leverage ratio suggests a lower level of financial risk and greater financial stability. However, it is essential to consider the company's overall financial strategy and industry benchmarks when evaluating the significance of this trend.